GM Investing

General Motors to Invest $5.4 Billion in U.S. PlantsNew Enhancements to Guarantee Future Jobs, Products

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General Motors announced its plans to invest roughly $5.4 billion in its manufacturing facilities in the United States, including those that provide assembly and parts for the Chevrolet Suburban and Silverado, GMC Sierra and Yukon, and other SUVs, trucks, and crossovers.

So far, the company has details about $800 million of its investment, including a $520 million shot in the arm for the Lansing Delta Township assembly plant, guaranteeing tooling and equipment for future new-vehicle programs at the plant. Currently, Lansing builds GM’s Lambda crossovers -- the Chevrolet Traverse, GMC Acadia, and Buick Enclave. We would bet much of the new money will go toward preparing the plant for the next generation of the company’s hotselling three-row large crossovers, but it’s possible the facility will produce an all-new model as well.

Furthermore, $124 million will go to Pontiac Metal Center in Pontiac, Michigan. That facility provides sheetmetal stamping for many of GM’s vehicles, including representatives from all four GM divisions. The investment will allow Pontiac to pre-test all body panel dies under regular production conditions, speeding the production process along. Additionally, $139.5 million is earmarked for a new body shop and upgrades to the stamping resources at Pre-Production Operations in Warren, Michigan. That facility builds pre-production and test-mule vehicles for GM, and the company says the investment will help with long-term quality control early in the respective vehicle’s development stage.

The investment represents about $5 million per day over the next three years. That cash will reportedly guarantee at least 1,900 jobs, although we bet that number is significantly higher. Additionally, it’s a safe guess that at least a few new jobs will be created as well.

“General Motors is investing in Michigan -- and Michiganders,” State Governor Rick Snyder said. “Our state’s automotive heritage and expertise is known around the globe, and GM and its workforce are a major part of that.”

Since 2009, GM has announced the investment of nearly $17 billion in its U.S. facilities. In total, those investments have resulted in 3,650 new jobs and the security of about 20,700 others. The company signed an agreement with the United Auto Workers (UAW) union in 2011, which has helped both organizations improve competitiveness and quality, while also creating jobs, according to UAW Vice President Cindy Estrada.